5 ETFs to watch this week

Funds tracking industrials, financials and techs should see an active week as key holdings report first-quarter earnings. With video.

By TheStreet Staff Apr 18, 2011 10:47AM

By Don Dion, TheStreet


Here are five ETFs to watch this week.


1.    Industrial Select Sector SPDR (XLI)


XLI will be in the spotlight as six of the fund's top 15 holdings release their earnings performance reports over the course of the next week. Companies scheduled include General Electric (GE), Honeywell (HON), United Technologies (UTX), Union Pacific (UNP), Danaher (DHR) and CSX.


Although XLI witnessed an impressive run during the opening months of 2011, the fund has seen some choppy action in March and April. It will be interesting to see if earnings numbers from top holdings will be able to push the fund higher in the near term.


Post resumes after video:


2.    iShares Dow Jones U.S. Technology Sector Index Fund (IYW)


Late last week, Google (GOOG) kicked off the earnings season for the technology sector on a tepid note. Although the company saw strong quarterly profit growth, investors appeared more concerned with the firm's rising expenses. As a result, the firm ended the week with notable losses.

Despite this less-than-favorable reaction to the search giant's report, I do not foresee long- term weakness in this industry.


Nearly a third of IYW's portfolio is dedicated to these tech industry bellwethers.


Looking to this week, a number of household tech names will report earnings, including Apple (AAPL), Intel (INTC), International Business Machines (IBM) and Texas Instruments (TXN).


3.    iShares Dow Jones U.S. Financial Sector Index Fund (IYF)


The financial industry has been a study in contrast in the start to this earnings season. JPMorgan (JPM) locked in record first-quarter earnings with a 67% increase in profit. Meanwhile, Bank of America (BAC) fell short of forecasts, witnessing profits decrease by 37%.


A variety of companies from across the financial spectrum will follow JPM and BAC in the coming week. Goldman Sachs (GS), Morgan Stanley (MS), Citigroup (C), Bank of New York Mellon (BK) and KeyCorp (KEY) are among those that will be closely watched.


The expansive ETF universe includes funds that allow investors to tap into various niches of the financial industry. IYF, however, boasts exposure to all of the institutions listed above, making it a strong play for investors looking for broad exposure to the industry.


4.    Global X Silver Miners ETF (SIL)


Although gold has managed to break through previous all time highs, silver is the resource that is currently dominating precious metal-related discourse. As the white metal powers through the $42 per ounce level, analysts and market commentators are beginning to focus their attention on the $50 nominal all time highs.


Worries about the state of the global economic recovery, and inflation concerns could help to push silver higher in the days ahead. Investors looking for equity exposure to this popular precious metal should turn to SIL.


5.    SPDR S&P Homebuilders ETF (XHB)


This week's economic calendar is filled with housing-related data that should provide investors with clues as to the state of the real estate industry.


Despite my optimism towards the ongoing economic recovery, real estate continues to be a cloudy region of the markets. Supply concerns continue to threaten the stability of prices and it is difficult to tell when strength will return.

XHB could prove interesting to watch as the markets digest data relating to new and existing home sales, housing starts, and housing prices. However, I urge investors to stick to the sidelines when it comes to the residential real estate industry.


TheStreet contributor Don Dion owns Dion Money Management. At the time of publication, he didn't own any of the securities mentioned in this article.


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